Airbnb losing popularity and Ramifications

When airbnb’s first came out they were amazing.
The number one thing I remember is how incredibly cheap they were.

Word got out and they got popular. So popular!
Then prices started going up. Of course consumers aren’t going to pay for nothing so they started demanding cleaner accommodations, and more hotel like luxuries. Then prices went up again.

Then word got out, and people, and investors started buying so many houses for airbnbs. They were buying a lot of houses that would be categorized as started homes or downsizing homes. I believe this also artificially raised values for other houses.

Then Covid happened and all forms of manual labor costs skyrocketed IF you could even hire anyone.
More airbnbs were bought and touted as a great investment.

Then airbnb owners had to pay higher costs for cleaning and of course they passed those costs on to the consumer. Then in addition to the increased costs, owners were asking renters to clean up, take out the trash, do the dishes, etc. Soon it didn’t feel like a vacation and it was expensive…People started questing why they were using airbnbs.

Then for owners, it became even harder to find help and some places weren’t cleaned like a hotel, so renters left bad reviews, and went back to going to hotels. Now the economy is tanking, gas is expensive, and utility costs, food costs and every other cost is up across the board.
People are going to cut vacations before other things. What do you think is going to happen with all this inventory?

Perfect storm.. that is what I see.

Kind of true. I'm on lake Michigan and the locals on the water were $2000 a week pre COVID. now $10,000 a week next year. They have to make a years money in 3 months to survive because people got tired of renting from October to May and getting kicked out. A place down the road on the lake went for $25,000 per month this summer and is going to $50,000 a month next year. It'll be empty is my bet.

a reply to: JAGStorm
Then Airbnb got popular then the sharks moved in selling luxury type accommodation that were dives in dodgy places. Money for nothing. THAT'S the vast majority of Airbnbs properties so people are "once bitten, twice shy".

Tim Dillon's airbnb saga is really funny. I think he's still talking about it.

a reply to: JAGStorm

The sheer amount of greed since the pandemic is insane.

More than 25% of my town is Airbnb’s, and the majority of them are sitting empty in what is now supposedly ‘peak season’.

Pigs get fat, hogs get slaughtered.

originally posted by: KKLOCO
a reply to: JAGStorm

The sheer amount of greed since the pandemic is insane.

More than 25% of my town is Airbnb’s, and the majority of them are sitting empty in what is now supposedly ‘peak season’.

Pigs get fat, hogs get slaughtered.

It is greed. The sad thing is a lot of these places aren’t really taking care of these houses like real residents would. I think things will equalize pretty soon. I’m already seeing some foreclosures in my area. It’s coming.

originally posted by: mikell
Kind of true. I'm on lake Michigan and the locals on the water were $2000 a week pre COVID. now $10,000 a week next year. They have to make a years money in 3 months to survive because people got tired of renting from October to May and getting kicked out. A place down the road on the lake went for $25,000 per month this summer and is going to $50,000 a month next year. It'll be empty is my bet.

That’s funny, I might have looked at some of those. Here’s the stupid thing. Many of these places have limits on how many people you can have over. The whole point of renting a 12,000 sq ft place is to have a gathering, party etc. One place was literally that size and the limit was 6 people.

a reply to: JAGStorm

I was talking to a friend of mine who owns a restaurant and an Airbnb. He was renting it for $300 a night with no extra perks, just a few months ago. Now, he’s renting it for $100 a night with a 3 night minimum and giving his guests a $300 credit at his restaurant. Basically, a wash. He’s doing it to keep the maids for the house and servers at the restaurant busy. If he doesn’t keep them busy, they move on and he’s left holding the bag on everything.

originally posted by: JAGStorm

originally posted by: mikell
Kind of true. I'm on lake Michigan and the locals on the water were $2000 a week pre COVID. now $10,000 a week next year. They have to make a years money in 3 months to survive because people got tired of renting from October to May and getting kicked out. A place down the road on the lake went for $25,000 per month this summer and is going to $50,000 a month next year. It'll be empty is my bet.

That’s funny, I might have looked at some of those. Here’s the stupid thing. Many of these places have limits on how many people you can have over. The whole point of renting a 12,000 sq ft place is to have a gathering, party etc. One place was literally that size and the limit was 6 people.

Just was on Facebook now all the local house cleaners are fighting for work till fall colors. HAHAHAHA!!!!!!!!! And a bunch of for rent till May have popped up.

originally posted by: KKLOCO
a reply to: JAGStorm

I was talking to a friend of mine who owns a restaurant and an Airbnb. He was renting it for $300 a night with no extra perks, just a few months ago. Now, he’s renting it for $100 a night with a 3 night minimum and giving his guests a $300 credit at his restaurant. Basically, a wash. He’s doing it to keep the maids for the house and servers at the restaurant busy. If he doesn’t keep them busy, they move on and he’s left holding the bag on everything.

Has he thought about cutting his losses and selling everything?

I’ve noticed a few places like that here. The problem, they aren’t selling either. One place has been on the market over a year. It has an amazing location. The problem everyone knows is finding workers. Unless you have a big family it is too hard to do it with just a few people.

a reply to: mikell

House cleaners are already getting dropped by people. It’s a luxury service most people stop once money gets tight.
Landscaping is another, pest control as are delivery services.

Basically a lot of the services that have really been sticking it to people over the last few years. They are going to be begging for work.

a reply to: JAGStorm

Has he thought about cutting his losses and selling everything?

We are at the beginning of this recession. Typically, people don’t want to let go of their accomplishments at the beginning of economic downturns. It takes one to know one as it took me 2 years to finally realize real estate was destroyed back in 08’. I saw the signs of it in 06’ but didn’t leave until the sh!t hit the fan in fall of 08’.

I think every day about selling my business now. I’m inching closer to it. It’s just tuff when your still making good money. The problem is knowing when to actually pull the trigger and do it. You don’t want to wait too long before it’s worth nothing and all you get is a liquidation of assets.

a reply to: JAGStorm

I remember people being upset about all the air Bnbs when I lived in New Orleans.

I never stayed in one until a few months ago in the DFW area. It wasn't anything special.

I prefer hotels. The service is consistent and they're always convenient to the highways.

And I have boatloads of Marriott points that come in handy.

a reply to: mikell

Are they insane? WTF is going to pay $1k a night for a stay in a house. ludicrous

originally posted by: watchitburn
a reply to: JAGStorm

I remember people being upset about all the air Bnbs when I lived in New Orleans.

I never stayed in one until a few months ago in the DFW area. It wasn't anything special.

I prefer hotels. The service is consistent and they're always convenient to the highways.

And I have boatloads of Marriott points that come in handy.

I’ve been in some unique ones, but most are average at best. I also feel like most of them have hidden cameras. There is just a creepy feeling.

I like AirBNB in some areas. However, there are some communities where it seems like every house is on AirBNB and the investors have driven up home values to unsustainable levels.

a reply to: Edumakated

there are some communities where it seems like every house is on AirBNB and the investors have driven up home values to unsustainable levels.

1.5 million for a 3 bedroom 2 bath 1800 sq. ft. cookie cutter, in my area. I’ve been priced out of the market.

originally posted by: Edumakated
I like AirBNB in some areas. However, there are some communities where it seems like every house is on AirBNB and the investors have driven up home values to unsustainable levels.

I like unique stays airbnb, but other than that not fond of them.
I like the services of hotels, but even those have really suffered some.

a reply to: JAGStorm

Prices definitely have increased dramatically. My wife and I go to 30A in Florida every year. The place we stayed in this year was great, but they wanted double next year. Since the misses loves a bargain, she found a comparable place next year for a few days longer and a bit cheaper than we payed this year so it definitely pays to shop around.

As far as the expectations of the owners/managers, we haven't experienced anything specific. We treat the places we stay in almost like our own home since we are staying there for 10 to 14 days. We do light cleaning...sweeping, etc., obviously dishes and have never had any issues. I even repaired a small sprinkler system leak in the place we stayed in this year.

a reply to: KKLOCO

1.5 million for a 3 bedroom 2 bath 1800 sq. ft. cookie cutter, in my area. I’ve been priced out of the market.

We are slightly less than that for new builds but the thing is the population here just doesn’t make the salary to afford that. I’ve seen the inside of those houses and they are using the cheapest, the absolutely builder basic finishes.